The order has been passed by the Ministry of Corporate Affairs. According to Section 396 of the Companies Act, 1956, the central government can order the merger of two companies if it is essential in public interest. The clause has been rarely used by the government. However, in this case, since the subsidiary is cash-strapped and has no funds to pay its dues, the government has ordered the merger. The merger with the financially viable FTIL will facilitate the recovery of dues for creditors of the NSEL.
Challenge by stakeholders
According to the law, submissions can be made to the Ministry of Corporate Affairs within 60 days of the order. The shareholders and stakeholders of FTIL are expected to file submissions with the Ministry opposing the merger. Through the merger will benefit the victims of the scam perpetrated by NSEL, it will also dilute the assets of FTIL and affect the investments of the shareholders and stakeholders of FTIL.
After a gap of half a century, Mitsubishi Aircraft has rolled out Japan’s first commercial jet .
Nature of the MRJ
The MRJ has a little less than 100 seats. The jet is valued at $42 million. It marks Japan’s second attempt to enter the commercial aircraft market. The unique aspect of the MRJ is that is consumes one fifth less fuel than an aircraft its size.
Development of the MRJ
The MRJ has been developed by a subsidiary of Mitsubishi Heavy Industries which counts carmaker Toyota Corp as one of its shareholders. The MRJ will now be subject to a multiple flight before the first delivery of the aircraft in June 2017. This target is 3 years later than Mitsubhishi’s original plan.
The Union Cabinet has given its approval to grant financial assistance to the Ahmedabad Metro Rail Project.
The Cabinet has granted its approval for the Rs. 10,773 cr project to build Phase I of the Ahmedabad Metro Rail project.
Phase I of the metro rail
Phase I of the rail project covers a 35.96 km long route along two corridors, namely, the North-South Corridor covering 15.42 km from APMC to Motera Stadium and East-West Corridor covering 20.54 km from Thaltej Gam to Vastral Gam.
Role of the Central Government
While the total project cost is Rs.10,773 cr, the Central government will contribute Rs. 1,990 cr in the form of equity and subordinate debt.
Implementation of the project
The project will be implemented by the Metro-Link Express for Gandhinagar and Ahmedabad (MEGA) Company Ltd., which will now be converted into a 50:50 jointly owned company of the Central government and state government of of Gujarat.